Exclusive: Hamilton’s Salary Demands Preventing New Mercedes Contract

The six-time World Champion is yet to sign a contract extension with Mercedes for the 2021 Formula One season.

Lewis Hamilton’s unwillingness to take a pay cut is hindering his contract extension negotiations with the Mercedes F1 team, a source in the paddock has told Formula1News.co.uk.

The Brit is currently earning around £40 million per year with the Silver Arrows, but they are looking to reduce this by around 60 percent in light of the coronavirus-induced global economic crisis, the source added.

READ: Sergio Perez & Hulkenberg Are Potential Options For Red Bull – Marko

Hamilton, however, is reportedly not willing to take such a steep pay cut – and this disagreement is what led to the impasse in his contract extension negotiations.

Mercedes and Lewis Hamilton previously said a new contract is yet to be agreed as they simply haven’t had the time to go over the finer details of his new deal due to the congested 2020 season.

And, just a couple of weeks ago, Mercedes F1 team principal Toto Wolff said he believes Hamilton will still be with the team next year, but replied “never say never” when asked if he thinks the Brit might join Red Bull.

“Never say never. I’ve seen crazier things in my life,” the Austrian said.

“But I don’t see why Lewis would do that. He has a very strong personal bond with the Mercedes brand and the team that he helped to create.

“At the moment we are giving him the best car and we have mutual trust in each other. We still have successful times ahead of us.

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“I do not believe such a move for him would be rationally understandable,” Wolff concluded.

 At the moment, it’s unclear if Hamilton will eventually yield and accept the pay cut – at least for a single year – so he can potentially go on to win his eight F1 crown in 2021 and surpass Michael Schumacher’s all-time record.

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